Angiotech wraps oversubscribed offer to exchange $225 million floaters

By Susanna Moon

Chicago, Aug. 10 - Angiotech Pharmaceuticals, Inc. said holders tendered $255,532,000 of its senior floating-rate notes due 2013 in the exchange offer that ended at 11:59 p.m. ET on Aug. 9.

The company will accept $225 million of the notes using a proration factor of 0.8805, according to a press release.

Angiotech also will enter into a supplemental indenture that allows the new notes and existing notes to vote together as a single class on certain matters.

As previously reported, the company offered new 9% senior notes due 2016 issued by Angiotech Pharmaceuticals (U.S.), Inc. in exchange for the floaters. The company originally offered to repurchase $200 million of the floaters and upsized the offer on July 27.

The company will issue $1,020 principal amount of new notes for each $1,000 principal amount of old notes tendered by 11:59 p.m. ET on July 23, the early tender date. The total purchase price includes a 2% early tender premium.

Holders who tendered their notes after the early deadline will not receive the 2% early tender fee.

Consents were needed from holders of a majority of the outstanding notes to amend the notes. Holders who tendered their notes will be deemed to consent to the proposed amendments, and holders who consent were required to tender their notes.

"Due to strong demand for our new notes, we were able to increase the maximum potential size of our exchange offer. We are pleased, in response to our significantly improved business performance, that many of our existing creditors have shown such strong support for our company," Thomas Bailey, president and chief executive officer of Angiotech, said in the release.

"Additionally, as these new notes are similar in cost, on an after tax basis, as compared to our existing debt, we welcome the opportunity to exchange into new debt with extended maturity out to 2016," Bailey said.

The offer began on July 3, and the expiration was extended from 11:59 p.m. ET on July 31. The early tender date was originally set for 11:59 p.m. ET on July 17 and was also extended.

The offer was conditioned on receiving tenders for at least $190 million of the floaters by the early tender time.

Angiotech said that, if the offer were to be oversubscribed, it would accept the notes on a pro rata basis, based on principal amount tendered and regardless of when the notes were tendered.

The new notes were offered under an exemption from the registration requirements of the Securities Act of 1933. The company said it would not file a registration statement under the Securities Act for the offer of new notes.

The information agent is D.F. King & Co., Inc. (800 755-7250).

Angiotech makes medical devices and is based in Vancouver, B.C.

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